Below are the key financial terms used on our site:

Arbitrage Rebate - a payment made by an issuer to the federal government in connection with an issue of tax-exempt bonds. The payment represents the amount, if any, of arbitrage earnings on bond proceeds and certain other related funds, except for earnings that are not required to be rebated under limited exceptions provided under the Internal Revenue Code. An issuer generally is required to calculate, once every five years during the life of its bonds, whether or not an arbitrage rebate payment must be made.

Bond Proceeds - bond proceeds are the cash received from the sale of taxable or tax-exempt debt to investors

Forward Delivery Agreement - A Forward Delivery Agreement ( also known as a "forward purchase and sale agreement", or simply "forward purchase agreement") is a contract wherein the buyer agrees to purchase from the seller specific types and amounts of securities on specified future dates at (usually) fixed yields based upon the current market price at the time the contract is executed. Forward contracts are generally entered into in over-the-counter markets.

Guaranteed Investment Contracts - GIC. Debt instrument issued by an insurance company, usually in a large denomination. The interest rate paid is guaranteed but the principal is not. Also called guaranteed interest contract.

Interest Rate Swaps - a contractual agreement between two parties who agree to exchange ( or "swap") certain cash flows for a defined period of time

Pooled Investment Funds - under the Public Funds Investment Act, a pooled fund group (or pooled investment funds) is two or more accounts combined for investment purposes

Repurchase Agreements - A contract in which the seller of securities, such as Treasury Bills, agrees to buy them back at a specified time and price.

Structured Products - Structured products are synthetic investment instruments specially created to meet the needs than cannot be met from the cash financial instruments available in the markets. Structured products can be used as an alternative to a direct investment; as part of the asset allocation process to reduce risk exposure of a portfolio; or hopefully to participate in a current market trend

Swap Advisory - advisory services offered for swaps

Yield Restriction - a general requirement under the Internal Revenue Code that proceeds of tax-exempt bonds not be used to make investments at a higher yield than the yield on the bonds. The Internal Revenue Code provides certain exceptions, such as for investment of bond proceeds for reasonable temporary periods pending expenditure and investments held in "reasonably required" debt service reserve funds.